BlueHalo lands $1.4B contract which is expected to lead to Albuquerque jobs

By:  Collin Krabbe

Engineering company BlueHalo has been awarded a $1.4 billion government contract from the U.S. Space Force for the satellite communication augmentation resource (SCAR) program.

According to the Space Force, the SCAR program "will address the critical U.S. Space Command requirement to rapidly, responsively and affordably augment satellite control capacity for the satellite control network, as it provides tactical control links to U.S. Space Force satellites."

The federal Space Rapid Capabilities Office announced the contract award on May 24. BlueHalo will partner with Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS), according to a release from the company.

In a statement, BlueHalo sector president Dan Gillings said "this program creates 60 new engineering and manufacturing jobs and presents a unique opportunity for the customer, BlueHalo, and key suppliers to be co-located within the Albuquerque area.”

A representative for BlueHalo was unable to be reached for immediate comment.

Based in Arlington, Virginia, BlueHalo employs 300 people in Albuquerque, spokeswoman Tiffany Sevieri told Business First in March.

In a statement, Sen. Martin Heinrich (D-NM) called the $1.4 billion contract an investment that further positions New Mexico "as the go-to destination for all things space."

BlueHalo, which previously planned to build a 200,000-square-foot development at the planned Max Q business park in Albuquerque, has instead set its sights on an existing building at 10800 Gibson Blvd. SE, among others. The facility is the company's fourth in Albuquerque. In total, the company now occupies 163,000 square feet in Albuquerque.

The Albuquerque City Council on June 22 is scheduled to consider incentives for Blue Halo related to its Albuquerque expansion. Project documents show the company has applied for a $16 million industrial revenue bond (IRB) and for $2.5 million in Local Economic Development Act incentives (LEDA).

IRBs are bonds issued by a governmental entity to finance economic development projects. LEDA incentives are used to support expanding businesses.